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OSP2

USU SoftwareXTRA:OSP2 Stock Report

Market Cap

€261.0m

7D

-3.9%

1Y

2.5%

Updated

24 Sep, 2021

Data

Company Financials +
OSP2 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends5/6

OSP2 Overview

USU Software AG, together with its subsidiaries, provides information technology (IT) and knowledge management software solutions for knowledge-based service management in Germany and internationally.

USU Software Competitors

Price History & Performance

Summary of all time highs, changes and price drops for USU Software
Historical stock prices
Current Share Price€24.80
52 Week High€20.60
52 Week Low€32.00
Beta1.29
1 Month Change-7.12%
3 Month Change1.22%
1 Year Change2.48%
3 Year Change9.25%
5 Year Change14.82%
Change since IPO-88.30%

Recent News & Updates

Shareholder Returns

OSP2DE SoftwareDE Market
7D-3.9%0.04%-0.2%
1Y2.5%-3.6%27.2%

Return vs Industry: OSP2 exceeded the German Software industry which returned -3.9% over the past year.

Return vs Market: OSP2 underperformed the German Market which returned 27.4% over the past year.

Price Volatility

Is OSP2's price volatile compared to industry and market?
OSP2 volatility
OSP2 Beta1.29
Industry Beta0.94
Market Beta1

Stable Share Price: OSP2 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OSP2's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977739Bernhard Oberschmidthttps://www.usu.com

USU Software AG, together with its subsidiaries, provides information technology (IT) and knowledge management software solutions for knowledge-based service management in Germany and internationally. It operates in two segments, Product Business and Service Business. The Product Business segment offers infrastructure management services for the administration of IT assets, contracts, and software licenses; service/change management services for compliance with and formalization of IT service processes comprising procurement, support, and maintenance; and finance management services for the transparency, planning, budgeting, and charging of IT costs and services.

USU Software Fundamentals Summary

How do USU Software's earnings and revenue compare to its market cap?
OSP2 fundamental statistics
Market Cap€260.99m
Earnings (TTM)€6.19m
Revenue (TTM)€109.16m

42.2x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OSP2 income statement (TTM)
Revenue€109.16m
Cost of Revenue€52.40m
Gross Profit€56.76m
Expenses€50.57m
Earnings€6.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.59
Gross Margin51.99%
Net Profit Margin5.67%
Debt/Equity Ratio1.3%

How did OSP2 perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

68%

Payout Ratio

Valuation

Is USU Software undervalued compared to its fair value and its price relative to the market?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OSP2 (€24.8) is trading below our estimate of fair value (€31.79)

Significantly Below Fair Value: OSP2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OSP2 is poor value based on its PE Ratio (42.2x) compared to the German Software industry average (40x).

PE vs Market: OSP2 is poor value based on its PE Ratio (42.2x) compared to the German market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: OSP2 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: OSP2 is good value based on its PB Ratio (4x) compared to the DE Software industry average (4.5x).


Future Growth

How is USU Software forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSP2's forecast earnings growth (26.8% per year) is above the savings rate (0.01%).

Earnings vs Market: OSP2's earnings (26.8% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OSP2's revenue (9.2% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: OSP2's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSP2's Return on Equity is forecast to be low in 3 years time (12.5%).


Past Performance

How has USU Software performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSP2 has high quality earnings.

Growing Profit Margin: OSP2's current net profit margins (5.7%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: OSP2's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: OSP2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OSP2 had negative earnings growth (-33.6%) over the past year, making it difficult to compare to the Software industry average (-4.4%).


Return on Equity

High ROE: OSP2's Return on Equity (9.5%) is considered low.


Financial Health

How is USU Software's financial position?


Financial Position Analysis

Short Term Liabilities: OSP2's short term assets (€47.5M) exceed its short term liabilities (€35.1M).

Long Term Liabilities: OSP2's short term assets (€47.5M) exceed its long term liabilities (€18.7M).


Debt to Equity History and Analysis

Debt Level: OSP2's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if OSP2's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: OSP2's debt is well covered by operating cash flow (1366.8%).

Interest Coverage: OSP2 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is USU Software current dividend yield, its reliability and sustainability?

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OSP2's dividend (1.61%) is higher than the bottom 25% of dividend payers in the German market (0.99%).

High Dividend: OSP2's dividend (1.61%) is low compared to the top 25% of dividend payers in the German market (3.18%).


Stability and Growth of Payments

Stable Dividend: OSP2's dividends per share have been stable in the past 10 years.

Growing Dividend: OSP2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68%), OSP2's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OSP2's dividends in 3 years are forecast to be well covered by earnings (48% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.8yrs

Average board tenure


CEO

Bernhard Oberschmidt (51 yo)

no data

Tenure

€473,800

Compensation

Mr. Bernhard Oberschmidt serves as the Chairman of Management Board and Chief Executive Officer of USU Software AG (formerly USU-Openshop AG) and has been a Member of its Management Board since February 8,...


CEO Compensation Analysis

Compensation vs Market: Bernhard's total compensation ($USD554.80K) is below average for companies of similar size in the German market ($USD927.71K).

Compensation vs Earnings: Bernhard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: OSP2's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

USU Software AG's employee growth, exchange listings and data sources


Key Information

  • Name: USU Software AG
  • Ticker: OSP2
  • Exchange: XTRA
  • Founded: 1977
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €260.989m
  • Shares outstanding: 10.52m
  • Website: https://www.usu.com

Number of Employees


Location

  • USU Software AG
  • Spitalhof
  • Möglingen
  • Baden-Württemberg
  • 71696
  • Germany

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 22:56
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.